1: Introduction and Overview of the Initiative

  • India aims to construct its first commercial crude oil strategic storage to enhance its reserves as a preventive measure against potential supply interruptions.
  • In this regard, Indian Strategic Petroleum Reserves Limited (ISPRL), a subsidiary of the Oil Industry Development Board (OIDB), has invited bids for construction of 2.5 million tonnes of underground storage at Padur in Karnataka.

2: Strategic Petroleum Reserves (SPR) Programme

  • The SPR programme is part of India's energy security strategy to tackle supply interruptions.
  • The storage facilities under this programme are constructed in the form of underground rock caverns in India's East and West coasts, which are the safest means for storing hydrocarbons.

3: Role of Indian Strategic Petroleum Reserves Limited (ISPRL)

  • ISPRL, an entity under the Ministry of Petroleum & Natural Gas, oversees the administration of strategic crude oil storage facilities.
  • Engineers India Limited (EIL) acts as the project management consultant for ISPRL, supervising storage operations and coordinating stock release in case of supply disruptions through a Government Empowered Committee.

4: Geography and Importance of Padur Storage

  • Padur in Karnataka has been strategical chosen for the construction of this strategic crude oil storage facility.
  • Being a coastal state, Karnataka offers the added advantage of accessibility and ease of transportation of crude oil.
  • The facility at Padur will significantly contribute to building up India's strategic petroleum reserves, ensuring national energy security.

GK:

  • India's first commercial crude oil strategic storage initiative is in line with India's pursuit of energy security.
  • The initiative is being led by ISPRL, which is a subsidiary of the Oil Industry Development Board (OIDB) under the Ministry of Petroleum and Natural Gas.
  • The storage under the SPR programme is constructed in the form of underground rock caverns.
  • The new 2.5 million tonnes underground storage facility is set to be built at Padur in Karnataka; a strategically important location due to its coastal proximity.